Asset Management is a hedge fund management company based in Hong Kong, established in 2009, primarily focusing on the Asian markets through its asset management business managing various funds. IvyRock Asset Management holds nearly $19 million in the spot Bitcoin ETF IBIT from BlackRock.
Investment advisory firms hold a total of $3.8 billion in asset management. Among them, Horizon Kinetics LLC holds the highest share, with $946 million. This independent investment advisory firm, founded in 1994 in New York, manages assets with various investment strategies, including mutual funds, separate accounts, and alternative investments.
One notable feature of Horizon Kinetics is its emphasis on non-traditional and less efficient markets, often seeking opportunities undervalued or misunderstood by the market, such as small-cap stocks, international stocks, and niche industries, aiming to profit from long-term trends and market inefficiencies. Horizon Kinetics LLC holds a total of $946 million in Grayscale’s GBTC, ranking first among investment advisory firms and being the second-largest holder of GBTC after Susquehanna International Group, as mentioned later.
Morgan Stanley, a globally renowned investment bank and wealth management company based in New York, holds $270 million in Bitcoin ETF investments, all invested in Grayscale’s GBTC, making it the third-largest holder of GBTC. Morgan Stanley, founded in 1935 and originating from the American financial giant Morgan family, offers services ranging from corporate financing, merger advisory, securities underwriting, asset management, wealth management, to investment banking.
Pine Ridge Advisers, a well-known financial advisory company founded in 2018 in New York, holds a total of $210 million in Bitcoin spot ETFs, including $83.2 million in BlackRock’s IBIT, $93.4 million in Fidelity’s FBTC, and $29.3 million in Bitwise’s BITB.
ARK Investment Management, founded by Cathie Wood, holds $206 million in the ARK 21 Shares Bitcoin ETF. Ovata Capital Management, based in Hong Kong and founded in 2017, focuses on Asian stocks, with holdings exceeding $74 million in various Bitcoin ETFs. Hightower Advisors, a reputable investment management company based in Chicago, holds over $68.34 million in the US Bitcoin spot ETF. Rubric Capital Management, based in the US and established in 2008, holds over $60 million in BlackRock’s Bitcoin spot ETF.
In terms of holding companies, SIG Holdings, LLC, the parent company of Susquehanna International Group, holds $1.3 billion in Bitcoin spot ETFs. SIG is a financial services company based in Pennsylvania, known for its specialization and technological prowess in the financial markets. It holds nine Bitcoin spot ETFs, amounting to $1.31 billion, with the largest holding being Grayscale’s GBTC.
On January 11, 2024, the US Securities and Exchange Commission (SEC) approved the listing of 11 Bitcoin spot ETFs on exchanges, marking a milestone event in the digital currency market. The approval of Bitcoin ETFs and other cryptocurrency-related ETFs undoubtedly opens the door for traditional investors to enter this emerging market. Investing in Bitcoin through ETFs regulated by the SEC carries lower risk compared to direct investment in Bitcoin, especially amidst the current international uncertainties and Federal Reserve rate cuts.
However, with only 20% of disclosed holdings by major institutions accounting for billions of dollars, the whereabouts of the remaining over 80% of assets being bought is unknown. As funds flow into these top financial products, it may divert attention from new projects in the primary and secondary markets. Feel free to comment and share your insights.